Seoul: The employment scenario for young, female, and elderly workers in Korea is facing significant challenges, as the quality of available jobs continues to decline. According to a Federation of Korean Industries report, released on Tuesday, the analysis of employment indices over a decade (2014-2023) revealed that despite a slight rise in employment rates among Korean youth, women, and older workers, these groups fall in the middle or lower range among the 38 member states of the Organization for Economic Cooperation and Development (OECD).
According to Yonhap News Agency, Korea's employment rates for youth (aged 15-29) and women (aged 15-64) were 45 percent and 61.4 percent respectively in 2023, while the employment rate for senior workers (aged 55-64) stood at 69.9 percent. Despite these figures, the country ranked 27th for youth employment, 30th for women, and 15th for senior workers among OECD countries. The study noted an increase of 4-6 percentage points in employment rates for these groups, but the quality of employment worsened significantly.
The report highlighted that the number of full-time regular workers in the youth demographic decreased by 400,000 over the past decade, falling to 800,000 in 2023, marking an annual average decline of 4.4 percent. This placed Korea at the bottom among OECD countries in terms of growth rate. Conversely, part-time employment in the same age group rose from 380,000 to 560,000, placing Korea sixth among OECD members.
According to a recruitment market research by the Korea Chamber of Commerce and Industry, also released on Tuesday, a staggering 82 percent of companies with job openings in the first half of the year sought only experienced workers. Only 15.4 percent of companies were open to hiring both inexperienced and experienced workers, while a mere 2.6 percent preferred hiring only inexperienced individuals. This presents a significant barrier for students and recent graduates looking to gain job experience.
The FKI report further noted a decline in job quality for women, despite a slight decrease in the share of low-income earners among salaried full-time women employees over the past decade. Korean women's employment remains predominantly in sectors like restaurants, lodging facilities, cleaning, and daycare services, maintaining Korea's high ranking among OECD countries in terms of low-income earners.
Elderly workers face similar challenges, as detailed by the Korea Employment Information Service, a public agency under the Ministry of Employment and Labor. In June last year, the number of working individuals aged 62 or more reached 2.72 million. Their average monthly wages were 1.84 million won ($1,354), with women earning only 59 percent of what their male counterparts did. Additionally, 53.9 percent of older workers were employed for less than 40 hours a week, with 75 percent working in small and medium-sized enterprises and 32.6 percent in very small businesses with fewer than 10 employees.
The editorial underscores the importance of creating new jobs while also enhancing job quality. It emphasizes the need for more stable and decent job opportunities for youth, as well as improved internships and job training programs involving both colleges and businesses. Utilizing retirees' job skills and experiences more effectively is also deemed critical, with the autonomy of companies to decide on extending the statutory retirement age being a debated issue.
The economic independence of young people, women, and older workers is crucial for reducing social security costs. The Lee Jae Myung government is urged to focus on increasing full-time employment opportunities for young people and improving employment quality for those disadvantaged in the labor market.